Telehealth platform Hims & Hers announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz, who has more than 25 years of experience at the Danish pharmaceutical company known for its diabetes and obesity treatments, has served in various roles, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz praised Hims & Hers for its potential to revolutionize the healthcare industry, stating, “This is the first company I have seen that is leveraging today’s modern tools to truly break down barriers and change the status quo of how people access the health solutions they need to live their fullest lives. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers saw its stock rise by 3% during Monday’s trading session, with shares increasing 125% since the start of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in popular diabetes and weight loss medications like Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is marketing a month’s supply of the weight loss medication at $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 cost.
The limited availability of these highly sought-after brand-name drugs has prompted various telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit the specific needs of an individual patient.
Although the Food, Drug, and Cosmetic Act typically prohibits the compounding of drugs that are simply replicas of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz told Bloomberg that the company envisions a “long future” in selling compounded semaglutide. When asked about the sustainability of compounded semaglutide sales after the shortages conclude, he expressed confidence, noting that patients will still require individualized prescriptions.